Ruiz, Cruz-Perez Introduces Legislation to Restore Tax Breaks for Grocery Stores in Urban Enterprise Zones

Trenton – Senate Majority Leader M. Teresa Ruiz and Senator Nilsa Cruz-Perez introduced legislation to restore the sales tax break for grocery stores in Urban Enterprise Zones.

“For decades, the grocery stores built in urban enterprise zones have been completely exempt from sales and use taxes, drastically reducing their operating costs,” said Senator Ruiz (D-Essex). “Unfortunately, that exemption was recently capped at $100,000, a limit easily reached by most supermarkets. This legislation will restore that exemption, which many retailers did not realize had been altered and which impacts them now more than ever given the rising cost of gas and products.”

The bill, S-2791, would exempt groceries stores from the $100,000 cap currently placed on sales and use tax exemptions for businesses operating in urban enterprise zones. There are currently 37 municipalities that are classified as urban enterprise zones, located in 13 of New Jersey’s 21 counties.

“Urban areas often lack adequate access to grocery stores,” said Senator Cruz-Perez (D-Camden/Gloucester). “By providing this sales tax break to grocery stores in UEZs, this bill will incentivize more businesses to operate in urban areas, improving access to grocery stores especially in areas near communities which may be a food desert.”

Currently, supermarkets in food deserts are exempt from the $100,000 cap, this bill would level the playing field and allow supermarkets in UEZ to have the same benefit as they often serve people in food desert communities.